XJEC(SZ:000400)2022-12-07 09:44Group 1: Company Background and Ownership Changes - In 2007, XJ Electric began introducing strategic investors, with Anxin Trust holding 100% of XJ Group [1] - In 2009, State Grid's subsidiary, China Electric Power Research Institute, gained control of XJ Group through capital increase [1] - In 2011, the equity held by China Electric Power Research Institute was transferred to China Electric Equipment Group [1] - In 2012, State Grid directly held the equity of XJ Group, making XJ Electric a listed company under State Grid [2] Group 2: Business Development and Market Position - XJ Electric has a comprehensive product range in the distribution network sector, leading the industry in terms of strength, project performance, and market share [2] - The company is confident in capturing a larger share of the distribution automation market due to the increasing reliance on electricity supply [2] - The smart meter business, managed by XJ Instrument Company, is positioned among the top five in market share in China [3] Group 3: Revenue Growth Factors - Revenue growth is attributed to three main factors: the expansion of the smart grid and renewable energy markets, increased market development efforts, and improved internal management leading to reduced costs [3] - The company has seen a significant decrease in sales, management, and financial expenses, contributing to net profit growth [3] Group 4: International Business Expansion - XJ Electric has been actively expanding its international market share, aligning with State Grid's internationalization strategy [4] - The company has shifted its focus from supplying equipment and single machine exports to comprehensive electrical equipment contracting and project contracting [4] - XJ Electric is involved in international projects in regions such as Southeast Asia, Africa, the Middle East, and South America, with ongoing projects in countries like Brazil, Kenya, Vietnam, Thailand, and Mongolia [4]